Pizza Inn 2Q sales dive, but EPS rises after debt repayment

Jan. 22, 2003

THE COLONY, Texas -- Pizza Inn, Inc. (Nasdaq: PZZI) reported on Jan. 23, that earnings per share (EPS) and net income were up in the last half of 2002 (the first half of the company's fiscal year) amid a same-store sales drop of more than 5 percent during the period.

According to a release, the jump in EPS and income came largely from the repayment of a $1.9 million loan owed to the company by its former CEO, Jeffrey Rogers.

Rogers resigned last August after Pizza Inn's board of directors decided he was unable to repay the loan. The company then recorded the unpaid loan as a pre-tax charge.

For its second quarter ended Dec. 29, EPS was 19 cents versus 6 cents for the same period in 2001, while net income was $1.9 million versus $567,000. Revenues for the prior period were $15.2 million versus $16 million in the most recent period.

For the last six months of 2002, EPS was 22 cents versus 11 cents in the comparable period a year before, while net income was $2.2 million compared to $1.2 million. Revenues for the prior period were $30.5 million versus $33.3 million in the most recent period.

Excluding the reversal of the pre-tax charge, net income for the second quarter was $606,000 (6 cents per share), compared to net income of $567,000 (6 cents per share) for the same quarter last year.